Galleon Founder Took Millions Amid Firm Turmoil, Suit Says

Law360, Los Angeles (April 19, 2017, 10:52 PM EDT) -- Galleon Group LLC founder Raj Rajaratnam paid himself around $131 million from one of his company's units while he faced the insider trading charges for which he's now serving prison time, according to an adversary proceeding in a liquidation suit in New York bankruptcy court on Tuesday.

Rajaratnam, who is serving an 11-year prison sentence over a vast insider trading scheme, was still facing those charges but hadn't yet been convicted when he and three other Galleon executives took hundreds of millions from Galleon Management LP,...